We are paying Salary already above Minimum wage to FTC (fixed term contract) - But Min Wage Act has the condition of DA increase twice in year.
So Do we have to increase DA twice in year for FTC? If yes, whats the meaning of having salary fixed in contract? (Like 15000 for one year mentioned in contact?)
From India, Mumbai
So Do we have to increase DA twice in year for FTC? If yes, whats the meaning of having salary fixed in contract? (Like 15000 for one year mentioned in contact?)
From India, Mumbai
Fixed Term Employment does not mean that salary is fixed. It only means that the employment is for a fixed period, say one year, two years etc. Like all other employees, you should give salary to such fixed term contract employees also. That should include Dearness Allowance as per the current cost of living index. In some states the CPI is reviewed in three months, in some states, it is reviewed in six months and in some states it is done only annually. It is your responsibility to refix the salary of the FTC employees according to the CPI. If your state follows fixing of DA in every half year, then you should refix the salary of all employees accordingly. As already said, fixed term contract doe not mean fixed salary agreement. There cannot be any employment with a fixed salary. The salary should change when there is a change in the consumer price index.
From India, Kannur
4238From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Minimum Wage of UP & UK.pdf